Stocks hit fresh highs, but Google, Microsoft earnings disappoint

The S&P 500 is up nearly 150% from its bear-market low in early 2009. (Mark Lennihan / Associated Press)

Walter Hamilton

Enjoy the stock market's latest record while you can.

The Dow Jones industrial average and Standard & Poor's 500 index both turned in fresh highs Thursday, propelled by favorable earnings and a drop in jobless claims.

Share prices also got a boost from the latest congressional testimony by Federal Reserve Chairman Ben S. Bernanke, who reiterated the central bank's commitment to its economic stimulus efforts.

But Google Inc. and Microsoft Corp. uncorked disappointing earnings after the market closed, with both stocks getting clipped in after-hours trading.

The reports from the technology titans could spark renewed concerns about corporate earnings and weigh on the market Friday.

Average S&P 500 earnings are projected to rise a lukewarm 3.3% in the second quarter, according to research firm SP Capital IQ. Only four of 10 sectors are expected to post profit gains, with financial stocks leading the way.

The Dow advanced 78.02 points, or 0.5%, to 15,548.54. It was the blue-chip indicator's 27th closing high this year. The index also reached a new intraday record.

The S&P was up 8.46 points, or 0.5%, to 1,689.37.

The market was helped by good earnings at UnitedHealth Group Inc. and IBM. Morgan Stanley shares rose 4.4% after the financial giant reported better-than-expected earnings and unveiled a stock-buyback plan.

The S&P 500 is up nearly 150% from its bear-market low in early 2009, making it the fifth-best bull market of the modern era, according to research firm Bespoke Investment Group.

And it's eyeing the fourth-best bull market, when the index climbed 158% in the mid-1940s. The S&P would have to rise a bit more than 3% to pull into fourth place, according to Bespoke. After that would be the mid-1980s romp that drove the index up 229% before it was upended by the 1987 market crash.